Merchant Services Operating Guide

Merchant Services

Operating Guide

Card Services Operating Procedures

1. Mastercard, Visa, Discover, PayPal and American Express Card

Acceptance

4

1.1. Card Descriptions

4

1.2. Effective/Expiration Dates

6

1.3. Valid Signature

6

1.4. Users Other Than Cardholders

6

1.5. Special Terms

6

1.6. Delayed Delivery Transactions or Deposit Balance

6

1.7. Recurring Transaction and Preauthorized Order

Regulations

7

1.8. Payments by Installments

8

1.9. Certain Rules and Requirements

8

1.10. Card Acceptance

9

1.11. Deposits of Principals

9

1.12. Merchants in the Lodging Industry

9

1.13. Customer Activated Terminals and Self-Service

Terminals

10

1.14. Displays and Advertising

10

1.15. Cash Payments by and Cash Disbursements to

Cardholders

11

1.16. Discover Cash Over Transactions

11

1.17. Telecommunication Transactions

11

2. Suspect Transactions

11

3. Completion of Sales Drafts and Credit Drafts

12

3.1. Information Required

12

3.2. Mail/Telephone/ Internet (Ecommerce) Orders and

Other Card Not Present Sales

13

3.3. Customer Service Telephone Numbers

15

4. Data Security

15

4.1. Payment Card Industry Data Security Standards (PCI

DSS)

15

4.2. Data Security Requirements

15

4.3. Compliance Audits

15

4.4. Immediate Notice Required

16

4.5. Investigation

16

4.6. Required Information for Discover Network and PayPal

Security Breaches

16

4.7. Merchant Providers

16

4.8. Reserved

16

4.9. Costs

16

5. Authorizations

16

5.1. Card Not Present Transactions

17

5.2. Authorization via Telephone (Other Than Terminal /

Electronic Device Users)

17

5.3. Authorization via Electronic Devices

17

5.4. Third Party Authorization System

18

5.5. Automated Dispensing Machines

18

5.6. Pre-Authorization for T&E (Travel & Entertainment) and

Restaurant Merchants

18

5.7. Discover and PayPal Procedure for Request for

Cancellation of Authorization

19

5.8. Partial Authorization and Authorization Reversal

19

6. Submission/Deposit of Sales Drafts and Credit Drafts

19

6.1. Submission of Sales for Merchants Other Than Your

Business

19

6.2. Timeliness

19

6.3. Electronic Merchants: Daily Batching Requirements &

Media Submission

19

7. Settlement

19

8. Refunds / Exchanges (Credits)

20

8.1. Refunds

20

8.2. Exchanges

21

9. Retention of Records for Retrievals and Chargebacks

21

9.1. Retain Legible Copies

21

9.2. Provide Sales and Credit Drafts

21

10. Lost/Recovered Cards

21

11. Chargebacks, Retrievals and Other Debits

21

11.1. Chargebacks

21

11.2. Summary (Deposit) Adjustments/Electronic Rejects

25

11.3. Disputing Other Debits and Summary Adjustments

25

12. Account Maintenance

25

12.1. Change of Settlement Account Number

25

12.2. Change in Your Legal Name or Structure

25

12.3. Change in Company DBA Name, Address or

Telephone / Facsimile Number

25

12.4. Other Changes in Merchant Profile

25

12.5. Reserved

25

13. Card Organization Monitoring

25

14. Supplies

25

15. Special Provisions for American Express

26

15.1. Treatment of the American Express Brand

26

15.2. Treatment of American Express Marks

26

15.3. Treatment of the American Express Card Member

Information

26

15.4. American Express Transaction Data

26

15.5. Treatment of American Express Cardholder Information 26

15.6. Disclosure and Use of Data Collected Under Agreement 26

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15.6.1. Consent for American Express to Contact You by

Phone, eMail, Text or Facsimile

26

15.6.2. Opt-Out

26

15.7. Conversion to a Direct Relationship with American

Express

27

15.8. Reserved

27

15.9. Third Party Beneficiary Rights

27

15.10. Your Right to Opt Out of American Express Card

Acceptance

27

15.11. Collections from American Express Cardholder

27

15.12. American Express Key-Entered Charges

27

15.13. Keyed No Imprint for American Express Transactions 27

15.14. Merchant Website Information Display Guidelines

27

15.15. Aggregated Charges

27

15.16. American Express Excessive Disputes

27

15.17. American Express Right to Modify or Terminate

Agreement

27

15.18. Acceptance Procedures for American Express Travelers

and Gift Cheques

28

16. Glossary

28

WFB2009 (Rev 00 - 9/17)

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Operating Procedures

These Operating Procedures describe the procedures and methods for submitting Credit Card transactions for payment, obtaining Authorizations, responding to Chargebacks and Media Retrieval Requests, and other aspects of the operations of our services. You are required to comply with these Operating Procedures as part of your Merchant Processing Agreement.

Processor is a full-service financial transaction processor dedicated, among other processing services, to facilitating the passage of your Sales Drafts back to the thousands of institutions who issue the Mastercard,? Visa? , Discover and American Express Cards carried by your customers, as well as to the independent Card Issuers of American Express? and Optima. The Operating Procedures contained in this part focus primarily on the Mastercard, Visa and Discover and PayPal and American Express Card Organization Rules, and seek to provide you with the principles for a sound Card program; however, you should consult the Card Organization Rules for complete information and to ensure full compliance with them. They are designed to help you decrease your chargeback liability and train your employees. (In the event we provide Authorization, processing or settlement of transactions involving Cards other than Mastercard, Visa, Discover, PayPal and American Express you should also consult those independent Card Issuers' proprietary rules and regulations.)

The requirements set forth in these Operating Procedures will apply unless prohibited by law. You are responsible for following any additional or conflicting requirements imposed by your state or local jurisdiction.

1. Mastercard, Visa, Discover, PayPal and American Express Acceptance

1.1. Card Descriptions. At the point of sale, the Card must be carefully examined to determine whether it is a legitimate and valid Card and not visibly altered or mutilated. The name of the Card (e.g., Visa, Mastercard, Discover, PayPal or American Express) should appear in bold letters on the Card. For all Mastercard and Visa Cards and some Discover Cards, the Card Issuer (e.g., XYZ Bank, etc.) should also appear in bold letters on the Card. The following is a description of the authorized Visa, Mastercard, Discover, PayPal and American Express Card designs:

Visa: The Visa Brand Mark must appear in blue and gold on a white background in either the bottom right, top left, or top right corner. Embossed/Unembossed or Printed Account Number on valid cards begins with "4." All digits must be even, straight, and the same size. The Four to Six Digit Bank Identification Number (BIN) must be printed directly below the account number. This number must match exactly with the first four digits of the account number. The Expiration or "Good Thru" date should appear below the account number. The Mini-Dove Design Hologram may appear on the back of the card. The threedimensional dove hologram should appear to move as you tilt the card. The Magnetic-Stripe is encoded with the card's identifying information. The Card Verification Value 2 (CVV2) is a three-digit code that appears either in a white box to the right of the signature panel, or directly on the signature panel. Portions of the account number may also be present on the signature panel. CVV2 is used primarily in card-absent transactions to verify that customer is in possession of a valid Visa card at the time of the sale The Signature Panel must appear on the back of the card and contain an ultraviolet element that repeats the word "Visa?." It may vary in length. The words "Authorized Signature" and "Not Valid Unless Signed" must appear above, below, or beside the signature panel. If someone tried to erase the signature panel; the word `VOID" will be displayed. Chip cards contain a small embedded microchip that is virtually impossible to copy or counterfeit. Chip Antenna for contactless

cards, the interface can be an antenna embedded into the back of the card and connected to the chip. A contactless transaction works at terminals through the radio frequency wave between the card and the terminal. You are required to familiarize yourself with the new design by consulting the document entitled"Card Acceptance Guidelines for Visa Merchants" and Chargeback Management Guidelines for Visa Merchants You may download the document from Visa's website at . com/merchant.

Mastercard: The Mastercard symbol appears on the front or back of the Card. The Mastercard hologram is a 3 dimensional with a repeat "Mastercard" printed in the background. In addition, the words Classic, Preferred, Gold or Business may appear. When rotated, the hologram will reflect light and appear to move. Mastercard account numbers are sixteen (16) digits, and the first digit is always a two (2) or five (5). The first four digits of the account must be printed directly below the embossed number. The signature panel is tamper evident with the word "Mastercard" printed in multiple colors at a 45? angle. For magnetic swiped transactions, remember to compare the signature on the back of the card with the cardholder's signature on the receipt. The 4 digits printed on the signature panel must match the last 4 digits of the account number, followed by the 3 digit indent printed CVC2 number. A Chip may be present on the card. The cardholder will be prompted to enter a unique personal identification number or PIN when the card is inserted into a chip capable payment terminal. PayPass? contactless payment technology may be present on card. A signature is not required for PayPass? "tapped" transactions below a specified limit. You are required to familiarize yourself with the new design by consulting a document "Mastercard Card Identification Features." You may download the document from Mastercard's website at . mastercardmerchant. com/us/merchant.

Discover: The Discover Network includes Discover, Diners Club International, JCB, UnionPay, BCCard and Dinacard. Valid standard rectangular plastic Cards bearing a Discover? Acceptance Mark include the following common characteristics and distinctive features.

? The Discover Acceptance Mark may appear on the lower right corner of the front, back, or both sides of the Card.

? Cards display either a three-dimensional hologram on the front or back of the Card or a three-dimensional holographic magnetic stripe on the back of the Card. Valid Cards do not display holograms on both front and back.

? Card Numbers may be embossed or unembossed and will appear on either the front or back of a Card. Card Numbers begin with the number "6" and are composed of 16 digits that should be clear and uniform in size and spacing.

? The Cardholder name, and if applicable, business name, may be embossed or unembossed and will appear on either the front or back of the Card.

? The "Valid Thru" date may be embossed or unembossed and will appear on either the front or back of a Card in mm/yy format that indicates the last month in which the Card is valid.

? The words "DISCOVER" or "DISCOVER NETWORK" appears on the front of the Card under an ultraviolet light.

? The signature panel displays the words "DISCOVER" or "DISCOVER NETWORK" and may vary in size. Cards may contain a panel that includes an ultraviolet image of the word "DISCOVER." An underprint of "void" on the signature panel becomes visible if erasure of the signature is attempted.

? The last four digits of the Card Number may be displayed on the back of the Card and are commonly printed in reverse indent printing on the signature panel.

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? On embossed Cards, a security character, displayed as an embossed stylized "D" may appear on the front of the Card.

? The 3-digit CID is printed on the back of the Card in a separate box to the right of the signature panel.

NOTE: Valid Cards may not always be rectangular in shape (e.g., Discover 2GO Cards). Certain valid unembossed Cards or Contactless Payment Devices approved by us for use in accessing Card Accounts (e.g., contactless stickers, key fobs, and Mobile Commerce Devices) and to conduct Contactless Card Transactions may not display the some features described above. Card expiration date and other features listed above are not displayed on such Contactless Payment Devices.

NOTE: For unembossed Cards used to conduct a Card Present Card Sales, Merchants must obtain an Authorization Response electronically using a POS Device. A Card Sale involving an unembossed Card may be subject to Dispute if the Merchant "key enters" Card information into a POS Device and does not use the electronic Authorization procedures.

The features indicated below are found on valid Contactless Chip Payment Devices approved for use in accessing Card Accounts and to conduct Contactless Card Transactions:

? Standard, plastic rectangular Cards that are also Contactless Chip Payment Devices bear the security features described above.

? Contactless Chip Payment Devices other than Mobile Payment Devices bear the Contactless Indicator.

? Contactless Magnetic Stripe Payment Devices bear the Discover Zip Indicator

? Other Acceptance Mark as described below for Diners Club International, JCB, and UnionPay.

Diners Club International:

? A Diners Club International Acceptance Mark in upper left corner.

? Two-character alphanumeric code printed in the lower right corner.

? Embossed 14 ? digit Account Number (begins with 36).

? Embossed 16 ? digit Account Number (begins with 30).

? Embossed digits on the card must be clear and uniform in size and spacing within groupings.

? Embossed expiration data appears in mm/yy format and indicates the last month in which the Card is valid.

Note: Some valid Cards bearing a Diners Club International Acceptance Mark display a printed, unembossed Card number. If a Card sale involving a Diners Club International Card with an unembossed Card number cannot be completed by swiping the card through the POS Device, the card should not be accepted. If submitted, such card sale may be subject to Dispute.

Union Pay:

? A 16 ? digit Card number starting with "622," "624," "625," "626," or "628" is embossed on the front of the Card.

? Embossed digits on the Card should be clear and uniform in size and spacing.

? The embossed expiration date appears in mm/yy format and indicates the last month in which the Card is valid.

? The Card contains a magnetic stripe.

? A three-dimensional hologram image of Heaven Temple in the foreground with Chinese characters in the background appears on the front of all such Cards. The hologram reflects light as it is rotated.

? "Valid Thru" and the Cardholder name (which may not be in English) are embossed on the front of the Card.

? The CID appears on the upper right corner of the signature panel.

Note: Text on Cards bearing a China UnionPay Acceptance Mark may not be printed in English.

JCB:

? Card Numbers are made up of 16 digits, starting with "35" embossed or printed on the front of the Card.

? Embossed digits on the Card should be clear and uniform in size and spacing within groupings.

? The Cardholder name and, if applicable, business name embossed on the front of the Card.

? A JCB Acceptance Mark appears on the front of the Card.

? A three-dimensional hologram image of rising sun, rainbow, and "JCB" in micro lettering appears on either the front or the back of the Card. The hologram reflects light as it is rotated.

? The embossed expiration date appears in mm/yy or mm/dd/yy format on the front of the Card and indicates the last month in which the Card is valid.

? The Card contains a magnetic stripe on the back of the Card.

? The name "JCB" appears in ultraviolet ink on the left bottom of the front of the Card when held under an ultraviolet light.

? The first four digits of the Card number match the 4-digit number preprinted just below the embossed Card number of the front of the Card.

? The first four digits of the Card number displayed on the signature panel on the back of the Card match the last four digits of the Card number that appears on the front of the Card.

? The last four digits of the Card number on the back of the Card followed by the 3-digit CID.

? An overprint on the signature panel reads "JCB" in two colors, blue and green.

? Some Cards have an embedded integrated circuit chip on the front of the Card.

? The words "Good Thru," "Valid Dates," "Valid Thru," or "Expiration Date" must be printed near the expiration date. The corresponding words in the language of the country where the JCB Card is issued may also be printed. The words "Month/Year" or the corresponding words in the language of the country where the JCB Card is issued may be printed above or below the expiration date.

Note: Some valid Cards bearing the JCB Acceptance Mark will have a printed, unembossed Card number on the Card. If a Card sale involving a valid, JCB Card with an unembossed Card number cannot be completed by swiping the Card through the POS Device, the Card should not be accepted. If submitted, such Card sale may be subject to dispute.

PayPal Tokens:

? PayPal logo appears on the front of the card with all remaining features appearing on the back of the card

? The following features appear on the back of the card:

i. PayPal Account Holder name

ii. Last 4 digits of the Account Number printed on the PayPal Card Token

iii. Valid thru mm/yy date

iv. Tamper proof signature panel followed by a 3 digit CID value

? The full token card number does not appear anywhere on the card.

? Transactions processed using PayPal Card Tokens that do not have all of these features may be subject to Dispute under the Dispute Rules.

WFB2009 (Rev 00 - 9/17)

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